Tesla rival Xpeng posted larger losses in the third quarter of 2020 despite enjoying solid growth in vehicle deliveries during the period.

During the three-month period, the carmaker saw net losses climb to 1.1 billion yuan ($169.2 million) compared to registering 776.3 million yuan in losses in the same quarter of 2019, according to its latest earnings report.

The result came as Xpeng increased its spending on research and development by 46.1% to 635.4 million yuan in the third quarter.

Despite logging a wider net loss, Xpeng, which went public in the U.S. in August, enjoyed robust sales growth for the quarter, during which it delivered a total of 8,578 electric vehicles, up 265.8% year-on-year. Of all the cars delivered, 6,210 were its new P7 long-range electric sports sedans built at its wholly owned plant in the southern Chinese city of Zhaoqing.

The company’s total revenue totaled 2 billion yuan, representing a year-on-year increase of 342.5%, the financial report showed. About 95% of the total revenue was derived from vehicle sales.

Contact reporter Ding Yi (yiding@caixin.com)

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